Tuesday, August 16, 2011

More states considering pay-by-the-mile car taxes

http://content.usatoday.com/communities/driveon/post/2011/08/more-states-considering-pay-by-the-mile-taxes/1Well, you don't think you pay enough taxes, do you? It seems the politicians think you should pay more. Of course, Oregon will drop state gasoline taxes which now is at $0.30 per gallon.

Okay, let us say your fuel loving pick-up truck gets only 15 miles per gallon. That would mean you pay a $0.02 per mile in state taxes. And of course your tree hugging neighbor that drives a hybrid gets 60 mpg, so he only pays $0.005 per mile in state taxes. That seems fair, huh. Well now Oregon is considering to drop all that and charge you $0.85 PER MILE driven. So your Oregon state gasoline "tax" for that gallon of gas that get you 15 miles is $12.75. I don't live in Oregon, so I don't know what they are paying for a gallon of gasoline there, but here we are paying right at $3.50 as of today. Let us do the math. $3.50 minus the $0.30 in state gas taxes that they will stop charging is $3.20, for those 15 miles you you get in that pick up truck you will need to add $12.75 for the "new" per mile charge. So now your cost just went from $3.50 for 15 miles to $15.95 for the same 15 miles. Now that's fair, because what that neighbor pays will be the same you pay is what spin they will probably put on it. You see, it doesn't matter if you have a "good gas milage vehicle" you will be paying per mile, not per gallon. That ought to get the tree huggers panties in a wad!

But, wait....You don't think your state is considering the same thing? Think again. I would bet that any state that is having budget problems (which is most) would be looking at something similar.

Keep your eyes WIDE open folks.

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